{"id":9,"date":"2018-12-03T20:28:40","date_gmt":"2018-12-03T20:28:40","guid":{"rendered":"http:\/\/surfshields.com\/index.php\/2018\/12\/03\/bitcoin-is-a-ponzi-scheme-says-former-israel-prime-minister-ehud-barak\/"},"modified":"2018-12-03T20:28:40","modified_gmt":"2018-12-03T20:28:40","slug":"bitcoin-is-a-ponzi-scheme-says-former-israel-prime-minister-ehud-barak","status":"publish","type":"post","link":"https:\/\/surfshields.com\/index.php\/2018\/12\/03\/bitcoin-is-a-ponzi-scheme-says-former-israel-prime-minister-ehud-barak\/","title":{"rendered":"Bitcoin is a Ponzi Scheme, Says Former Israel Prime Minister Ehud Barak"},"content":{"rendered":"
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Former Israeli Prime Minister\u00a0Ehud Barak praised blockchain as an important technology but thinks bitcoin is a Ponzi scheme that should be avoided.<\/p>\n

Barak\u00a0\u2014 who was prime minister from 1999 to 2001 \u2014 made the remarks at the\u00a0Globes<\/a> Most Promising Startups event in\u00a0Tel Aviv, Israel.<\/p>\n

Barak recently invested in, and became chairman of, the medical cannabis company InterCure Ltd. He was responding to a question about whether medical\u00a0marijuana \u2014 like bitcoin\u00a0\u2014 is a bubble. He said no.<\/p>\n

Blockchain, Not Bitcoin<\/h2>\n

\u201cBlockchain itself is a mathematical technological concept and an interesting and important methodology,\u201d the tech investor said. \u201cCryptocurrencies\u00a0\u2014 bitcoin and all the others\u00a0\u2014 that\u2019s a Ponzi scheme.\u201d<\/p>\n

Barak said he doesn\u2019t believe that \u201cit\u2019s possible to make a currency in this way in the current generation.\u201d Accordingly, he will not invest in crypto. \u201cI wouldn\u2019t invest in anything that\u2019s related to cryptocurrencies,\u201d he said.<\/p>\n

However, like many crypto skeptics, Barak thinks blockchain<\/a> is a potentially game-changing innovation that could disrupt many different sectors, including business, healthcare, banking, and supply-chain management.<\/p>\n

\u201cWhoever has the patience and understands blockchain deeply can find a lot of uses for it, from keeping sensitive medical information through to contracts,\u201d he noted.<\/p>\n

Wall Street Veteran is Shorting Bitcoin<\/h2>\n
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Financial Analyst Gary Shilling Shorts Bitcoin: It\u2019s a \u2018Grand Ponzi Scheme\u2019 #cryptocurrency<\/a> #altcoin<\/a> https:\/\/t.co\/FFrcO0iOQC<\/a><\/p>\n

\u2014 Crypto News (@PaveIt_) November 16, 2018<\/a><\/p>\n<\/blockquote>\n

Ehud Barak\u2019s anti-crypto stance mirrors that of Wall Street financial analyst Gary Shilling, who also dismissed bitcoin as\u00a0\u201ca grand Ponzi scheme<\/a>,\u201d as CCN reported.<\/p>\n

And Shilling is putting his money where his mouth is: His eponymous New Jersey investment firm, A. Gary Shilling & Co., is shorting bitcoin.<\/p>\n

Shilling said bitcoin is a scam that fails as a currency because it lacks three fundamental requirements of a legitimate currency:<\/p>\n

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  1. It\u2019s not a store of value.<\/li>\n
  2. It\u2019s not a medium of exchange.<\/li>\n
  3. It\u2019s not universally accepted.<\/li>\n<\/ol>\n

    \u201cA currency has to have a store of value,\u201d he reasoned. \u201cWith the volatility in bitcoin prices, I don\u2019t think it has a store of value.\u201d<\/p>\n

    Barak\u2019s Foe Benjamin Netanyahu Is a Crypto Fan<\/h2>\n

    Meanwhile,\u00a0Ehud Barak\u2019s political nemesis, current Israeli Prime Minister Benjamin Netanyahu, is a fan of cryptocurrencies who thinks bitcoin and blockchain could render banks obsolete<\/a>.<\/p>\n

    In December 2017, Netanyahu \u2014 who has been prime minister since 2009 \u2014 said he believes traditional banks will eventually disappear.<\/p>\n

    \u201cIs the fate of banks that they will eventually disappear? Yes. The answer is Yes,\u201d\u00a0Netanyahu said in Hebrew. \u201cDoes it need to happen tomorrow, and do we need to do it through bitcoin? That\u2019s a question mark.\u201d<\/p>\n